Weak oil futures driving pressure on Saudis to cut prices

WORLD OIL | For the first time since the oil price recovery started three months ago, Saudi Arabia and other top Middle East producers are coming under heavy pressure to cut the price of their barrels, a sign of how the rally has begun to stall.

The change doesn’t herald the return of ultra-low oil prices seen in March and April, but rather indicates that futures are struggling to advance much above $40 a barrel. New spikes in coronavirus cases are depressing fuel demand as local lockdowns, delayed returns to places of work, and canceled vacations all restrict the movement of people. As that slows the consumption recovery, crude production is rising, potentially tipping the supply-and-demand balance back toward surplus.

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